SAN JOSE, Calif. (AP) — Avago Technologies said Monday that it has agreed to drop a lawsuit that claimed Cypress Semiconductor Corp. infringed on its patents.
Cypress also agreed to drop a counter suit alleging Avago patent infringement of Cypress’ own technologies, Avago said.
The two San Jose-based companies had each asserted five patents for enabling finger navigation in handheld devices.
Avago said it did not feel it was necessary to continue its lawsuit “based on the lack of traction for Cypress in the marketplace for optical finger navigation technology.”
A spokesman for Cypress could not immediately confirm if Cypress had dropped its lawsuit against Avago.
In a statement addressing Avago’s lawsuit, Cypress noted that it did not pay any damages nor did it admit any infringement.
“We’re pleased to put this matter to rest,” said T.J. Rodgers, Cypress’ president and CEO.
Cypress shares ended regular trading down $1.10, or about 6 percent, at $17.36. The stock rebounded $1.10 to $18.46 in aftermarket trading.
Shares of Avago Technologies slipped $1.15, or 3.8 percent, to $29.46 in regular trading. The stock was unchanged in aftermarket trading.